Company Number: 15220302

Analysis Date: 2025-07-20 11:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ad Wise Media Limited is a newly incorporated advertising agency (since October 2023) with small-scale operations. The company shows positive net assets and working capital, indicating sufficient short-term liquidity to meet obligations. However, due to its infancy, minimal financial history, and limited scale (single employee, low fixed assets), credit should be extended cautiously and monitored closely. Approval is recommended with conditions such as capped facility limits and regular financial reviews.

2. Financial Strength:
   The balance sheet reflects a modest but positive net asset base of £2,149 and net current assets of £1,893 as of 31 October 2024. Fixed assets are minimal (£316), primarily tangible fixtures and fittings. The company has low leverage and no long-term debt, but also limited equity (share capital £12). The financial position is stable but reflects an early-stage company with limited scale and capital buffer.

3. Cash Flow Assessment:
   Cash at bank of £33,915 comfortably exceeds current liabilities of £32,022, supporting liquidity to settle short-term obligations. The positive net current assets indicate adequate working capital. However, the company's cash flow generation capacity is unproven given the short operating period and no detailed profit and loss data provided. Cash flow should be monitored as business trading develops.

4. Monitoring Points:

• Track turnover and profitability growth in subsequent periods to ensure sustainability.
• Monitor liquidity ratios, especially the current ratio and cash balances relative to liabilities.
• Review director and shareholder actions for capital injections or withdrawals that may impact funding.
• Assess any overdue filings or changes in company status that could signal governance risks.
• Keep watch for any changes in control or director conduct that might affect credit risk.